Monday, 2 February 2015

The Cathford Group Credit Inc: Tips on buying foreclosed homes

RealtyTrace
has released a new report last week saying that around 7 million US homeowners
who lost their houses are now in a good position to buy again.

Short sales and foreclosures have increased
exponentially 7 years ago after the so-called Great Recession and the years of financial crisis. Now, with the economy finally getting
its momentum and employment rate increasing, homeowners who got foreclosures
could have a good chance in the market again.

According to analysts from The Cathford Group Credit Inc., although the modest
estimate of rebuilding a decent credit score
is 7 years, it is possible for
homeowners to recover from their foreclosures in as soon as 3 years.
This is good news for owners who lost their properties during the financial
crisis of 2007 as they should be able to qualify now for a new loan.

So if
you're one of those, here are a few tips to guide you in purchasing a
foreclosed house:

- Go
online and search for REO (real estate owned by a bank) property listings in
your chosen area. The REO tag means that the house has been foreclosed and
that it is now put on the market by the lender.

- A
foreclosed house come "as is", which means that the buyer will have
to shoulder costs for any repairs on the house that might be involved. And
there is very little room for negotiation so don't keep your hopes up for any
discount.

- Secure
a pre-approval letter from your lender even before you start making offers.
Oftentimes, buyers would remember to engage a real estate broker first thing,
and then forget the all important factor of how to get financing. Keep in mind
that banks will almost always require proof of financial capability so this
letter is essential -- unless of course you're paying in cash.

The letter should state just how much money
you're qualified to borrow depending on your income and credit score, as per
the analysis of your lender. This has an added benefit of showing your real
estate agent that you're really serious about making a purchase -- an important
factor for the agent to choose who to prioritize among his several clients.

- Check
recent prices of comparable properties in the area of your choice.

- The
Cathford Group Credit Inc. was able to determine a number of markets which are
expected to have the most number of prospective buyers. Areas like Las Vegas that are hit the most
during the crisis will now have house prices significantly cheaper for average
buyers to afford. But because it is expected that the majority of the market
consists of the Baby Boomers and Generation X, areas like Minneapolis, Chicago
or Florida will top the lists.